If you don’t frequently compare your car insurance rates with competitors, you could be spending more money than you should be for your car insurance policy.
Getting car insurance quotes allows you to see what other car insurance carriers are charging for policies that are similar to yours.
In some instances, using a car insurance comparison tool and purchasing a different policy from another carrier could save you hundreds of dollars a year.
Why Different Carriers Charge Different Rates for the Same Types of Policies
Different insurance carriers use different mathematical formulas for calculating risk, and they weigh certain factors heavier or lighter than their competitors.
This means that two insurance companies may charge dramatically different insurance rates for similar policies, which is why it’s important to get car insurance quotes via a comparison tool from several different car insurance companies before deciding on a policy.
It’s important to get no less than three quotes and preferably five quotes by using a car insurance comparison tool before you choose an insurance company and a policy.
This allows you to view all the prices and directly compare the policy details in order to ensure you are getting the best coverage for your money.
Look at More Than the Price
when you start shopping for car insurance policies, look at more than the monthly and overall costs. Too many drivers choose the policy with the lowest monthly cost or overall total premium. Unfortunately, this could cost you if you get into a car accident.
The worst-case scenario involves accidentally taking out a policy with a fake insurance agent who says he is authorized to sell insurance policies from various companies.
In this scenario, you would have most likely found the agent via an Internet search or through a direct ad for the agent. You would fill out the paperwork and pay the monthly premiums.
Unfortunately, if you were to get into a car accident and file a claim by calling the insurance company, you’d quickly find out that you weren’t holding a valid policy.
In this type of scenario, you would be responsible for all the damage incurred at the time of the accident.
To avoid this scenario, you should always check to see if the agent actually works or is approved to sell insurance policies from the insurance companies he or she lists on their website, especially if you clicked on a random ad via the Internet.
To entirely avoid this scenario, you should use a comparison tool to find valid policies that adhere to your state’s insurance rules and regulations.
Make Sure You Are Adequately Covered by the Policy
The second worst-case scenario is buying a cheap insurance policy and not reading the fine print or the exclusions.
In this instance, you would hold a valid insurance policy, but it may not cover items that you thought were covered, and it may offer too little coverage, leaving you underinsured.
To avoid this catastrophic scenario, you should use a car insurance comparison tool to quickly shop valid policies from well-known car insurance companies.
Once you have your quotes, look at the prices and read all of the paperwork for each quote to ensure that you are covered if you get into a car accident.
Once you have reviewed multiple policies from multiple insurance carriers, choose a policy that best meets your needs and your budget.
This may mean choosing a policy that is slightly more than the lowest quote, but this will allow you to feel confident that you are covered if you get into an accident.